5 Signs It’s Time to Consider Bankruptcy (and What to Do Next)

If you’re reading this, there’s a good chance you’re feeling overwhelmed, maybe even a little ashamed or hopeless about your financial situation. First, take a deep breath. You’re not alone—and you’re not a failure. Life can throw unexpected challenges at any of us: a medical emergency, a job loss, a divorce, or just the slow buildup of debt that became too much to manage. Bankruptcy isn’t the end. It’s a legal tool meant to help people get back on track. It’s a fresh start.

Here are five signs that it may be time to consider bankruptcy—and what you can do about it:

1. You’re Only Making Minimum Payments (or Missing Payments Entirely)
If you’re constantly juggling bills and only managing to pay the bare minimum—or you’ve started missing payments altogether—it’s a clear sign that your debt is unmanageable. Interest piles up, late fees grow, and the stress never lets up. Bankruptcy can pause the chaos and give you space to breathe.

2. Debt Collectors Are Calling Nonstop
When the phone rings and your heart sinks, that’s not normal. Harassment from creditors can take a real emotional toll. Bankruptcy triggers an “automatic stay,” which legally stops collections, lawsuits, garnishments, and those constant calls the moment your case is filed.

3. You’re Using One Credit Card to Pay Off Another
If you’re moving money around just to survive—borrowing from one place to pay another—you’re stuck in a dangerous cycle. That’s a signal that you’re not just dealing with a budget issue. Bankruptcy may be the responsible step to reset and rebuild.

4. Your Wages Are Being Garnished or You’re Facing Lawsuits
Once creditors start suing or garnishing wages, it becomes even harder to recover on your own. Filing for bankruptcy can immediately stop garnishments and may even help you recover some wages already taken. It also stops pending lawsuits in their tracks.

5. Your Debt Is Taking a Toll on Your Health or Family
If stress from debt is affecting your sleep, your relationships, or your mental health, it’s time to take back control. You deserve peace of mind. Bankruptcy isn’t about giving up—it’s about reclaiming your life.

What to Do Next
If any of this feels familiar, know that help is available. Start by talking to an experienced bankruptcy attorney who will listen to your story without judgment. A consultation can clarify your options and help you decide if bankruptcy is right for you—or if there’s another path forward.

The bottom line: you’re not broken. You’re not alone. And you’re not out of options.

When you’re ready, we’re here to help.

Visit us at sigallaw.com or call 248-220-1234 to schedule a free consultation.